Colorado data center bill fails in state legislature, expected to be reintroduced

A significant Colorado state bill, SB26-102, designed to regulate and provide limited incentives for large-load data centers, ultimately failed in the legislative session despite extensive last-minute efforts by its sponsor, State Sen. Cathy Kipp. The bill, a compromise following the earlier failure of Rep. Alex Valdez's HB26-1030, sought to mandate community review, ensure union labor hiring, and require annual reporting on industry-wide impacts, including water and electricity usage, partly in response to local concerns in Denver's Swansea neighborhood. Senator Kipp, a Democrat from the Fort Collins area, had initially believed she had the votes for passage but encountered strong opposition, notably from key labor groups seeking more generous incentives. However, the article indicates broader pushback, including from local governments represented by Colorado Counties Inc., who felt the bill intruded on their land-use authority, and some utilities, who found certain clean energy provisions problematic. A poll by Conservation Colorado revealed 91% of likely voters supported common-sense rules to protect ratepayers, communities, and natural resources from unrestricted data center growth. Despite the setback, Kipp expressed determination to reintroduce a revised data center bill in the 2027 legislative session, emphasizing the need for companies to address community concerns regarding water, air quality, electricity bills, and farmland. Senators Matt Ball (D-Denver), Lisa Cutter (D-Jefferson County), and Byron Pelton (R-northeastern Colorado) acknowledged Kipp's efforts but highlighted the complex array of stakeholders and their differing concerns, with Senator Cutter noting overwhelming constituent opposition to any incentives. The bill's failure leaves Colorado without new statewide regulations or incentives for data center development, prompting calls for continued negotiations over the summer.